What Are Aavegotchi NFT Pets, And Are They Worth The $450 Entry Price?

Aavegotchi is a game that uses NFTs with dynamic attributes to earn crypto by playing mini-games and upgrading the NFT and despite its triple digit entry price it is one of the most popular Play-To-Earn (P2E) Games on Blockchain. Aave (meaning ‘ghost’ in Finnish) is a crypto lending and borrowing app that allows users to obtain crypto loans using their crypto/stablecoin holdings as collateral.

aTokens are interest-bearing cryptocurrencies that are issued when a user makes a deposit on Aave, and can be bought and sold on decentralized exchanges (DEX) like Uniswap or Quickswap. In short, when a user deposits cryptocurrency, he receives aTokens, and when he deposits aTokens, he receives cryptocurrency. Each cryptocurrency accepted by Aave has an associated token (i.e. aUSDC, aWETH), and tokens held in a crypto wallet will slowly accumulate over time.


Related: Why are NFT loan/loan applications so difficult to create?

According to Swissborg AcademyAavegotchi pets, or ‘Gotchis’, can be bought or sold in Aavegotchi Market with GHST tokens, or they can be created by purchasing a ‘Portal’ and summoning a new one. Each Gotchi requires a minimum amount of aTokens to exist, which is marked on each Gotchi’s forehead, and each possesses unique stats/attributes that can be improved over time by playing (and petting) the Gotchi’s pet. Aavegotchi is governed by AavegotchiDAO, a decentralized autonomous organization (DAO) from GHST token holders and developed by Singapore-based Pixelcraft Studios. GHST is earned by playing minigames and voting in DAO, and can be bought or sold in Polygon’s Quickswap DEX.

How do attributes determine their usefulness?

Second-hand Aavegotchi pets can have better stats, equipped items, and a name, while new Aavegotchi pets will start with randomly generated attributes, no NFT clothing, and no name. Currently, the minimum price for a low-end Aavegotchi pet is around 410 GHST, or $471 USD. to summon a new pet NFT Gotchi, a Portal must be purchased. Open Portals will show 10 potential Gotchis that can be summoned, but only one can be chosen, while closed Portals show nothing, but have a small chance to drop a rare Gotchi when opened (but probably won’t). At the moment, portals are being sold at a minimum price of 515 – 570 GHST ($600 – $655). To summon a Gotchi, the user must first deposit the required amount of aTokens, which is determined by its rarity.

A Gotchi’s attributes determine its rarity, its performance in minigames, and the NFT handheld devices that can be equipped to it. Most attributes are changed through interaction, leveling up, and equipping NFT handheld devices. Random traits are assigned by the Chainlink Oracle VRF Random Number Generator, and are plotted on a graphical bell curve to show their rarity. The more extreme a trait is from one side or the other, the more useful it is for some minigames and detrimental to others, and the only ‘bad’ traits are average ones. Gotchis gain experience (XP) for voting and playing minigames, and with enough XP, the pet can ‘level up’. Every few levels, a Gotchi pet will receive a Spirit Point to increase or decrease a trait of the user’s choice. The more levels a Gotchi pet has, and the more refined its traits are, the more valuable it is to its owner (and other players).

While a $450+ price tag is a tall order for playing 2D pixelated minigames, dedicated players who learn to work with the Aavegotchi system can earn money by earning crypto rewards, or can train and deliver Gotchi pets to other players. Aavegotchi is currently one of the most advanced P2E games on the blockchain, and is a good example of how NFTs and cryptocurrencies could be used to create games that blur the line between gaming and decentralized finance (DeFi), also known as ‘GameFi’. While there is little chance of Aavegotchi spreading beyond its native crypto niche due to the high price of entry, curious gamers can still rent a Gotchi. NFT pet to play mini-games and earn crypto rewards.

Next: Dapps vs. Applications: Decentralized and Centralized Differences, Explained

Font: Swissborg Academy, aavegotchi